RESTRICTIVE COVENANT MODIFICATION PROGRAM FEE

Assembly Bill (AB) 1466 – Restrictive Covenant Modification Program Fee

Effective April 1, 2022, pursuant to AB 1466, documents accepted for recording at the Los Angeles County Registrar-Recorder/County Clerk may be charged an additional $2 as follows:

A county recorder may charge a fee of two dollars ($2) for recording the first page of every real estate instrument, paper, or notice required or permitted by law to be recorded per each single transaction per parcel of real property, except those expressly exempted from payment of recording fees, as authorized by each county’s board of supervisors and in accordance with applicable constitutional requirements. The funds generated by this fee shall be used only by the county recorder collecting the fee for the purpose of implementing a restrictive covenants program pursuant to Section 12956.2

  • This $2 fee will be calculated per title included within each document

This requirement is being made in accordance with the legislative addition of Government Code Section 27388.2

AB 1466 Notice of Exemptions

Per Government Code Section 27388.2(b), the $2 AB 1466 fee shall not be imposed on the following exempt documents:

  1. Any real estate instrument, paper, or notice recorded in connection with a transfer subject to the imposition of a documentary transfer tax, as defined in Section 11911 of the Revenue and Taxation Code.
  2. Any real estate instrument, paper, or notice recorded in connection with a transfer of real property that is a residential dwelling to an owner-occupier.
  3. Any real estate instrument, paper, or notice executed or recorded by the federal government in accordance with the Uniform Federal Lien Registration Act (Title 7 (commencing with Section 2100) of Part 4 of the Code of Civil Procedure).
  4. Any real estate instrument, paper, or notice executed or recorded by the state or any county, municipality, or other political subdivision of the state.

To be exempted from the AB 1466 fee, a valid exemption/reason must be stated on the face of the document, or on a document cover page which shall become part of the document, prior to depositing with the Recorder. If no valid exemption/reason is stated, the fee will be assessed.

Customers may select to utilize the LA County “Exemption Cover Page” that may be used to state an exemption. Please note there is a $3 additional-page fee that will be charged if the Recorder’s Exemption Cover Page is used.

See the full notice here.

First Legal, your premier litigation support provider.